Kathmandu, Feb. 11 -- The Supreme Court has annulled the interim order previously issued in favour of the contractor of the Sunkoshi Marin Diversion Multipurpose Project.

A bench of Justices Hari Prasad Phuyal and Nityananda Pandey on Tuesday ruled that the earlier interim order would not continue, opening the way for the seizure of the contractor's bank guarantee.

The court's decision allows the government to seize Rs3.6 billion in bank guarantees submitted by Patel-Raman JV for performance security and advance payments.

The project office had decided on November 11 last year to terminate the contract with Patel-Raman JV for civil structures, including the headworks and powerhouse, and for the supply and installation of hydromechanica...